The impact of house prices on consumption in South Africa : evidence from provincial-level panel VARs

Show simple item record Simo-Kengne, Beatrice Desiree Gupta, Rangan Bittencourt, Manoel 2014-02-24T07:13:25Z 2014-10-31T00:20:06Z 2013-06
dc.description.abstract This paper provides an empirical analysis of the role of house prices in determining the dynamic behaviour of consumption in South Africa using a panel vector autoregression (PVAR) approach to provincial level panel data covering the period of 1996 to 2010. With the shocks being identified using the standard recursive identification scheme, we find that the response of consumption to house prices shock is positive, but short-lived. In addition, we find that a positive shock to house price growth has a positive and significant effect on consumption, while the negative impact of an anticipated house price decrease causes an insignificant reduction in consumption. This suggests that house prices exhibit an asymmetric effect on consumption, with the positive effect following an increase in house prices being dominant in magnitude in comparison to a decline in consumption resulting from a negative shock to house prices. en_US
dc.description.librarian hb2014 en_US
dc.description.uri en_US
dc.identifier.citation Beatrice D. Simo-Kengne, Rangan Gupta & Manoel Bittencourt (2013) The Impact of House Prices on Consumption in South Africa: Evidence from Provincial-Level Panel VARs, Housing Studies, 28:8, 1133-1154, DOI: 10.1080/02673037.2013.804492 en_US
dc.identifier.issn 0267-3037 (print)
dc.identifier.issn 1466-1810 (online)
dc.identifier.other 10.1080/02673037.2013.804492
dc.language.iso en en_US
dc.publisher Routledge en_US
dc.rights © 2013 Taylor & Francis. This is an electronic version of an article published in Housing Studies, vol. 28, no. 8, pp.133-1154, 2013. doi : 10.1080/02673037.2013.804492. Housing Studies is available online at : en_US
dc.subject House prices en_US
dc.subject Consumption en_US
dc.subject Panel vector autoregression (PVAR) en_US
dc.title The impact of house prices on consumption in South Africa : evidence from provincial-level panel VARs en_US
dc.type Postprint Article en_US

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